KARACHI, Aug 29: The Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has expressed concern over the reduction in duty drawback rates on export of readymade garments.

In a statement here on Tuesday, Prgmea chairman Bilal Mulla said the cost of doing business in the country, especially in the value-added sector was rapidly increasing.

He said the recent reduction in duty drawback on import of various raw materials used for export goods such as readymade garments would further increase the cost of production.

Mr Mulla termed the decrease in drawback rates highly unjustified, as for the last couple of years the import duty on raw material used for the production of readymade garments remained unchanged. He said at present the garment industry was passing through grave crisis and needed immediate support from the government.

The Prgmea chief said the reduction in duty drawback was made without taking the stakeholders into confidence. He said if the government continued with its gradual reduction in support to the value-added garment industry, the entire industry would soon collapse and target to enhance export up to 15 per cent of the GDP could never be achieved.

He sought an upward revision in duty drawback rates for the promotion of value-added readymade garment industry.